"Paycheck Protection" in Michigan

The Michigan Nonprofit Association reports that the Michigan Senate passed a bill (S.B. 759) that prohibits Michigan nonprofits from using any resources that are "from a public body or a person acting on behalf of a public body" for advocacy around a state ballot initiative. The bill also prohibits charities from endorsing or opposing a candidate, which is already forbidden by IRS regulations. The bill specifically states, "A nonprofit corporation that receives money from a public body or a person acting on behalf of a public body as membership fees or dues shall not use the money or investment income derived from the money to influence the outcome of an election" held in Michigan. Because the definition of "membership fees" or "dues" is not specified in the bill, money from government employee-giving programs could be covered. If it becomes law, this bill will likely force charities to segregate any money that come from a "public source" and keep overly burdensome accounting records to assure that these funds are not used in any ballot initiatives, which may serve to dissuade charities from participating in ballot campaigns that are directly related to their mission.
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